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“Structural reforms are easier to implement at the time of great peril. One of the key reasons behind this is that reform is basically a political decision and in peacetime, it’s really challenging to rally the whole nation to take groundbreaking reformative measures the result of which is yet unknown.”

Part 1: COVID -19 and the Wartime Economics

COVID -19 has shaken the world and everything in it. Leaders and economists around the world have already declared the pandemic as the worst crisis after world war II and frequently referring the ongoing crisis management measures as a battle against this disease; thus comparing the current economic condition to wartime economics. Wartime economics, as we know it, is the complete mobilization of resources for utilizing as the fuels of war. The optimum outputs of this type of economics are the fine-tuned engines of war (i.e. superior military hardware and other great technological advancements), the improved system of managing collateral damage of war (i.e. …


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“For individuals, knowledge can always be considered as the most valuable asset. But for a country, especially for the third world countries where both the formal and informal institutions responsible for creating and disseminating knowledge have failed to do their job according to the specific requirements of the country, knowledge can become a great burden.”

The conventional wisdom says, “Knowledge is Power” and we do have very firm faith in this notion. This universal belief has a very distinctive and powerful impact on us as we shape our thinking, efforts and life-long devotions on the basis of this titular wisdom. …


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Photo by Kyle Glenn on Unsplash

Can cheap labor be considered as a blessing for further development or is this just a collapsing dream, a particularly weaponized variant of exploitation for the third world economies?

Cheap labor is one of the key components that boost the modern capitalistic economic system. The rise of globalization and the socio-economic evolution during the last century promoted cheap labor extensively. In this era of globalization, exploitation has multi-faceted forms and cheap labor can be considered as one of the most influential means of such practice.

Cheap labor, by default, is encouraged through the colorful promises of elevated standards of living and subsequent overall economic development for the country/region. Modern capitalistic societies proclaim that these workers who are selling their sweat in exchange for quite a marginal wage are just obtaining what they actually deserve. But there are often controversies regarding this issue and despite being the life-blood of the capitalistic global economy, cheap labor is always criticized due to its incompetence in improving the overall standard of living for the workers in the long-run. …


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Photo by Christy Au-Yeung on Unsplash

As a matter of fact, the global financial crisis, originated in 2008, was the greatest depiction of limitless greed and dishonesty of a few financial giants and their policymakers, primarily based on Wall Street. They’ve manipulated and destabilized the financial system for their own interest and paved the way to the ultimate destruction of the global economic harmony. The consequences were severe — extreme credit crisis, mass default of prestigious financial institutions, rapid economic downturn, massive unemployment and finally, social unrest.

The global financial sector technically sustains on one key catalyst–trust. And there’s another single thing that counters this life-blood of financial endeavors–greed. If greed surpasses the sacred oath of trust, the ultimate result is a crisis. And in some cases, like the global financial crisis of 2008, the crisis can spread like an all-consuming disaster throughout the globe. Here’s the truth — this subprime mortgage fueled financial and later economic crisis is considered as the most disastrous financial outburst in the history of modern financial systems. …


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Photo by Kevin Young on Unsplash

The policymakers must sacrifice their petty desire of gaining short-run popularity through drastic economic measures and look forward to the national interest as a whole

Recession is one of the prime features of the modern capitalist economic system. Generally, an economic downturn/decline that continues for two consecutive quarters is labeled as a recession. Observed in regular intervals, this phenomenon is caused by quite a number of factors — i.e. increased interest rate, a higher level of inflation, reduced level of consumer confidence, reduced real wage rate etc.. Though the economic recession is usually considered as a normal part of the economic cycle and expected to be recovered within one year, the situation can be worsened by inappropriate government policies and political maneuvers which could linger the tenure of the stagnation, therefore lead to severe economic depression. …

About

Md. Nazmush Shakib

“Dreamer-Thinker -Storyteller -Writer -Researcher -Economist” @treasury fund manager @fx trader ##Website: www.economaven.com

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